We specialize in coal-series kaolin in China, with integrated capabilities spanning the value chain from mining, R&D, processing to production and sales. According to Frost & Sullivan, we ranked fifth in terms of revenue of coal-series calcined kaolin companies in China in 2024, with a market share of 5.4%. As a prominent producer of calcined kaolin products in China, our business is anchored by our abundant and high-quality coal-series kaolin mineral assets. Our products mainly include precision casting mullite products and refractory mullite products, which are essential materials for precision casting shell mold and refractory materials. We also sell raw coke and raw powder to customers for further processing.
We have established a strong market position through our integrated business model and product quality advantages. For the years ended December 31, 2022, 2023, 2024 and the five months ended May 31, 2024 and 2025, we produced 117.9 kt, 114.5 kt, 105.6 kt, 46.8 kt and 84.8 kt of precision casting mullite products and 5.2 kt, 19.8 kt, 25.7 kt, 10.6 kt and 10.6 kt of refractory mullite products, respectively. According to Frost & Sullivan, we were the largest precision casting mullite products producer in China in terms of the revenue in 2024, with a market share of 19.1%. According to the same source, the market size of precision casting mullite products in China is expected to grow from RMB971.9 million in 2024 to RMB1,362.0 million in 2029, representing a CAGR of 7.0%, and the market size of refractory mullite products in China is expected to grow from RMB5,525.8 million in 2024 to RMB6,430.9 million in 2029, representing a CAGR of 3.1%. We are well-positioned to capture the growing market demand for refractory mullite products and strengthen our competitive position through differentiated product performance, disciplined execution and timely capacity expansion. Our kaolin ore is in inherently high quality, which enables efficient processing while maintaining consistently high product standards. Moreover, according to Frost & Sullivan, our kaolin ore exhibits superior refractoriness, hardness and chemical stability compared with the industry average, making it suitable for producing precision casting mullite products and refractory mullite products, which have become a preferred choice in high-temperature applications such as steel, cement, and glass, supporting sustained customer adoption and market share gains. As industry demand steadily increases, we are expanding capacity to continue consolidating share and competing effectively with existing and potential market participants.
Our products serve critical needs across multiple industries. Precision casting mullite products are primarily used as materials for shell mold-making in precision casting processes. These products are essential for casting high-precision components used in industries such as automotive, aviation, healthcare and general equipment. Refractory mullite products are mainly used to produce refractory materials, serving industries such as metallurgy and construction materials.
Our business is anchored by our abundant and high-quality mineral resources. In October, 2021, we entered into an asset transfer agreement with Shuoli Mining, pursuant to which we acquired the Shuoli Kaolin Mine. See “History, Development and Corporate Structure — Major Shareholding Changes of Our Company.” Since 2021, we have fully owned the Shuoli Kaolin Mine in Huaibei City, Anhui Province, which is renowned for its rich coal-series kaolin resources. According to the Independent Technical Report, as of May 31, 2025, our Shuoli Kaolin Mine possesses total estimated Mineral Resources of approximately 18,649 kt, comprising 2,367 kt of Measured Resources, 8,990 kt of Indicated Resources and 7,292 kt of Inferred Resources, and total estimated Ore Reserves of approximately 6,062 kt, comprising 1,093 kt of Proved Reserves and 4,969 kt of Probable Reserves. According to the Independent Technical Report, as of May 31, 2025, at the annual production volume of 400,000 tonnes, the remaining LoM of the Shuoli Kaolin Mine was estimated to be approximately 16 years. The geological characteristics of our mineral deposits offer operational advantages due to the nature of the associated coal-series kaolin found in our mine. The kaolin ore mined from our Shuoli Kaolin Mine can proceed directly to processing after being classified by type and specification, and only simple purification process is required before entering the beneficiation and processing stage. This reflects the inherently high quality of our kaolin ore, which enables efficient processing while maintaining consistently high product standards. Moreover, according to Frost & Sullivan, our kaolin ore exhibits superior refractoriness, hardness and chemical stability compared with the industry average, making it suitable for producing precision casting mullite products and refractory mullite products.
For the years ended December 31, 2022, 2023, 2024 and the five months ended May 31, 2024 and 2025, we generated revenue of approximately RMB190.4 million, RMB204.7 million, RMB267.1 million, RMB88.3 million and RMB104.9 million, respectively, and achieved net profit of approximately RMB24.4 million, RMB43.6 million, RMB52.6 million, RMB14.5 million and RMB18.0 million, respectively, demonstrating our sustained growth and profitability.
Source: Jinyan Kaolin (02693) Prospectus (IPO Date : 2025/11/25) |